Panini America, Inc. V. Fanatics, Inc Et Al
Summary: Panini America, Inc., a leading global trading-card company, has initiated legal proceedings against Fanatics, Inc., and its associated entities. The crux of Panini's allegations is that Fanatics is engaging in anticompetitive behavior with the aim of monopolizing the trading card markets for Major U.S. Professional Sports Leagues, including NBA, NFL, and MLB player trading cards. According to Panini, Fanatics has managed to secure exclusive, long-term licensing agreements with these leagues and their respective players associations. Additionally, Fanatics has acquired Topps, another prominent trading-card company. The lawsuit delineates eight pertinent markets and submarkets, such as Mass Market and Premium cards. These categories cater to a diverse range of collectors due to the variance in quality and price. Panini contends that Fanatics' actions have erected high barriers to entry in these markets, necessitating licenses, exclusive contracts, specialized manufacturing capabilities, and a skilled workforce. In a significant development, Fanatics procured a controlling interest in GC Packaging, LLC (GCP), a key manufacturer of trading cards for Panini, in March 2022. Panini asserts that this acquisition constitutes a direct breach of GCP's contractual obligations to them and was orchestrated to undermine Panini's business operations. Fanatics is alleged to have exploited its control over GCP to disrupt and limit Panini's trading card supply, leading to a decrease in the number of machines dedicated to Panini projects and a reduction in the number of releases planned for November and December 2022. Through this lawsuit, Panini aims to halt Fanatics' alleged anticompetitive activities and hold Fanatics responsible for its purported anticompetitive and tortious conduct.
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